Isolux to sell Brazilian transmission concessions to Brookfield
According to sources, Grupo Isolux Corsan SA is close to sell some of its Brazilian power lines to Brookfield Asset Management Inc.
The company has 4,703 kilometers of high-voltage electricity lines under concession in Brazil, including 1,191 kilometers in the Amazon.
This announcement comes after the company selleted Cubico and I Squared as the final bidders in the sale of Isolux's solar power subsidiary T-Solar, which was put up for sale nine months ago.
The Spanish engineering company is going through a financial restructuring and selling assets is a key factor to reduce its debt. The refinancing agreement of Isolux Corsan has been signed by the bondholders and a large majority of creditor banks. Once the deadline for the adhesion expired, the signatories of the agreement represent 89.4% of the financial debt subject to restructuring.
The restructuring plan defines three debt tranches: Tranche A of €200 million (US$222 million),Tranche B of €550 million (US$609 million) and Tranche C of €1,4 billion (US$1,5 billion). These injections will help it to avoid insolvency.
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